EU to implement digital currency user registration to record Bitcoin transactions

The European Commission has submitted plans to create a central database of digital currency users. The reason behind this is to prevent terrorist financing and money laundering.
The Commission said that virtual currency transfers, including Bitcoin, are not monitored or observed by the EU, so it is necessary to establish a regulatory framework for digital currency platforms.
"For this purpose, the responsible party needs to collect, process and record personal data and sometimes share these data with public bodies (such as FIUs) or private entities within the group," the department behind the proposal said.
As for providing a regulatory framework for cryptocurrency startups — which will likely require all EU cryptocurrency startups to collect personal and sensitive information about their users — the European Commission has stated in Article 65 of the Fourth Anti-Money Laundering Directive that a regularly maintained register of virtual currency users should be established by June 2019.
The committee proposes:
“Appropriate recommendations include, in the case of virtual currencies, the establishment and maintenance of a central database of user identities and wallet addresses by appropriate authorities, which should be made available to FIUs, and the provision of self-declaration forms for users of virtual currencies.”
The European Commission’s plan to create a central database for users of decentralized digital currencies is an ambitious one, but it has two core issues: the violation of personal data and, more disturbingly, cybersecurity.
European government agencies, law enforcement agencies and non-profit organizations have been the target of thousands of public data attacks since 2004. An estimated 229 public records breaches were reported in these attacks, exposing the vulnerability and outdated nature of European government-related IT systems.
The European Union and its cybersecurity department have long been involved in the dark web and Bitcoin transactions, proposing to create a central database of personal, private and sensitive financial records of millions of digital currency users, citing the illogical situation: digital currencies provide funding for most "terrorists" and illegal purchases in the world today.

Maybe it’s the mainstream media’s fault, but cash has become the preferred method for purchasing illegal items and financing terrorism for one simple reason: cash is completely anonymous, while digital currencies are not.
Virtual currencies based on public or shared ledgers are meant to be transparent and decentralized. This way, anyone on the network can access data on financial transactions. In early 2016, Europol used this weakness in the Bitcoin network to track down traders on the cybercrime market Silk Road.
If the European Commission’s view is that centralizing virtual currencies can stop illegal transactions for drugs and terrorist financing, then the Commission should implement the same plan for cash users, as there are obviously more cases of using cash to purchase drugs and launder money.